Investor Relations | page 1 Investor Relations | 1 Institutional Presentation March, 2007 Unibanco...

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Investor Relations | page 1 Investor Relations | 1 Institutional Presentation March, 2007 Unibanco and Unibanco Holdings, S.A. Investor Relations

Transcript of Investor Relations | page 1 Investor Relations | 1 Institutional Presentation March, 2007 Unibanco...

Page 1: Investor Relations | page 1 Investor Relations | 1 Institutional Presentation March, 2007 Unibanco and Unibanco Holdings, S.A. Investor Relations.

Investor Relations | page 1 Investor Relations | 1

Institutional Presentation March, 2007

Unibanco and Unibanco Holdings, S.A.

Investor Relations

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Overview of Unibanco

Investor Relations

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Highlights

*In 1Q07

Controlled by the Moreira Salles group

Publicly traded at Bovespa (Brazil) and NYSE

Level I Corporate Governance on the Bovespa

Level III ADR on the NYSE and a member of IBOVESPA

Very liquid stock: R$48.5 mln / US$24.1 mln ADTV* at Bovespa R$171.8 / US$85.5 mln ADTV* at NYSE

Financial statements in US GAAP since 1997

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• Offers investment products via Unibanco Asset Management to individuals and institutional investors and covers high net worth individuals, in the private banking segment

• Total assets under management: R$45.6 billion

• 2nd place in Private Banking (Anbid), with a 9.5% market share as of March, 2007

A Snapshot of UnibancoAs of March 2007

• Balanced business mix

• Aggressive expansion in the retail segment

• Benchmark in consumer finance and wholesale business

• Serves individuals and SMEs with annual revenues lower than R$150 million

• More than 24 million clients

• Leading Consumer Finance franchise

• Improvement of the credit card portfolio, which posted a 24% growth over the past 12 months

• Payroll linked loans portfolio presented a growth of 64.5% when compared to March 2006

Retail and Consumer Credit

Wholesale

• Full coverage of more than 2,000 corporations with annual revenues greater than R$150 million, in addition to institutional investors in Brazil and internationally

• Investment Banking: M&A, Capital Markets & Project Finance

• The Wholesale loan portfolio reached R$19,671, up 19.9% over the past 12 months

Wealth Management

CROSS SELLING

• Joint venture with AIG

• Individuals and corporate: life, auto, assets, disability, pension funds and annuities

• Unibanco AIG operational results: 13% up from 1Q06

• Unibanco Insurance and Pension Plans placed 4th in the ranking of private pension plans published by Susep, with a 9.1% market share as of February, 2007

Insurance & Annuity – Unibanco AIG

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Wholesale and Wealth Management

Audit Committee

Gabriel Jorge FerreiraChairman

Members

Board of Directors

Pedro MalanChairman

Pedro Moreira SallesVice-Chairman

Board Members

CEO

Pedro Moreira Salles

Retail

Organizational Structure

Prominent Board Members Independent Audit Committee

Legal and Tax Planning, Control, Operations and IR

TreasuryInsurance and PensionsHR and Communication

Risk, Compliance and Operational Efficiency

Guilherme A. Ferreira

Israel Vainboim

Pedro Bodin

Armínio Fraga

Joaquim F. Castro Neto

João DionisioFrancisco Pinto

Israel VainboimRogério Calderón

Eduardo A. GuimarãesGuy Almeida Andrade

Marcos LisboaGeraldo TravagliaClaudia Politanski

Demosthenes Madureira

Márcio Schettini José Rudge Daniel Gleizer

Page 6: Investor Relations | page 1 Investor Relations | 1 Institutional Presentation March, 2007 Unibanco and Unibanco Holdings, S.A. Investor Relations.

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Over 80 years of history to become one of the leading full service banks in Brazil

Timeline

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Segmentation and Distribution

Client Focus Nationwide Distribution(As of March 2007)

More than 17 thousand points of sale

Branches

NorthNortheast

Southeast

South

Mid-West

1169

701

122

44

Brazil 947

Corp. Site Branches

255

1,398957

5,6142,857

Points of Sale

11,081

9

7337

412140

Stores

671

Mid-West 46

Southeast 434South 240

Stores

Brazil 720

Consumer Finance Companies

NorthNortheast

Southeast

South

Mid-West

Brazil

NorthNortheast

Southeast

South

Mid-West

Brazil

NorthNortheast

Southeast

South

Mid-West

Brazil

NorthNortheast

Southeast

South

Mid-West

BrazilSmall Business

Large Companies

Upper Middle Market

Private Bank

UniClass Segment

Exclusive Segment

Corporate Individuals

Lower Middle Market

Wholesale Retail Private Banking

835

28198

37

306

95442

1552.363

293

3.348

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Client Base In Millions of Clients

Consumer Finance

Universal Bank

Joint-Ventures

with Retailers

Dec-03 Dec-04 Dec-05 Mar-06 Dec-06 Mar-07

24.1

6.4

5.0

5.0

1.8

18.2

6.8

5.3

5.3

3.0

20.4

4.3

7.1

4.7

23.8

7.7

4.0

4.1

6.0

14.1

7.1

5.2

7.8

4.0

7.0

5.2

5.6

3.2

21.0

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Retail Business Model

100% Unibanco Joint-Ventures Alliances

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Individuals

Car Loans

3.6

9.0

18.4

34.0

Corporate 2.7 20.1

Payroll Loans 64.520.9

Total Portfolio

5.1 16.0

Loan Portfolio Growth

39,684

23,891

15,793

Credit Cards

Consumer Finance Companies

Mar-06Dec-06Mar-07

18,319 17,425

28,682 27,936

47,001 45,361

1,4962,461 2,036

3,9874,947 5,070

2,9002,715 2,808

24.1-2.4

-6.4-3.3

R$ Millions

1,396Mortgages 1,545 1,476 10.74.7

SMEs 7,4889,011 8,515 20.35.8

Large Corporate 16,40319,671 19,421 19.91.3

Portfolio highlights

3,7395,009 4,594

Quarter %

12 months %

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64.5%

Dec-06 Mar-07

20.9%

40.8%

Mar-06

Acquired portfolioOwn portfolio

R$ Millions

1,1731,4966.2% 1,246

1,021

1,215

475

2,036

863

2,461

Payroll Loans

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Mortgage

Construction Loans Construction Loans (Plano Empresário)(Plano Empresário)

Mortgage FinancingMortgage Financing

Letter of Credit program

Participation on the equity

side of residencial

developments

Construction Loans to

Developers aiming the final

buyer’s mortgage

Sistema FácilSistema Fácil

Plano ÚnicoPlano Único

Presence in the sector:

Fidelization/Cross-selling

Main actions in 2007:

• Improvement of credit approval process

(credit analysis in less than 30 minutes)

• Improvement of customer services (Unibanco

takes care of all the necessary documents)(1)

• Closer relationship with developers and

brokers through agreements (Rede Secovi,

Lopes)

Unibanco is preparing itself for the development of this market in

Brazil

(1) Valid for the cities of São Paulo, Rio de janeiro, Belo Horizonte and Recife

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Mar-06 Mar-07

3,739

5,009

+34.0%

1Q06 = 100

193

123

170

116

Auto Financing

1Q07 1Q07

MarketMarket

Cars + Trucks & Buses Loans

Focus: New Cars (Financed Units) Focus: New Trucks & Buses (Financed Units)

R$ Millions

1Q06 = 100

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+24.1%

3,987

4,947

Mar-06 Mar-07

Credit Cards

+31.2%

4,172

5,474

R$ MillionsR$ Millions

Billings (Unicard + Hipercard)Loan Portfolio (Unicard + Hipercard)

Number of cards (In millions)

Total Cards

8

Credit Cards

22

30

5.0

10.0

15.0

20.0

25.0

Private Label cards

30.0

Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Mar-07

1Q06 1Q07

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Financial Performance

Investor Relations

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21.0%

Annualized ROAE (%) Stockholders’ Equity (R$ Bln)

Net Income + 11.7%

+ 11.7%

1Q07/1Q061Q07

581

938Operating Income

Performance

8.416.1%

7.4

25.1%

10.3

R$ Millions

1Q071Q051Q04 1Q06

9.5

24.0%

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Destaques

5.4% Retail portfolio growth in 1Q07:

- Payroll loans: 20.9% (64.5% YoY)

- Car loans: 9.0% (34.0% YoY)

- SMEs: 5.8% (20.3% YoY)

Loan Portfolio

18.4% reduction in provision for loan losses, 1Q07 vs 1Q06 (down 1.7% QoQ)

Better ratio of D-H portfolio over total loans (6.2% vis-à-vis 8.0% in March 2006)

Higher E-H portfolio coverage ratio, 116%, compared to 113% in March 2006

Asset Quality Improvement

Stocks Unibanco ADTV(1) (Bovespa + NYSE): R$220 million in 1Q07 versus R$179

million in 1Q06, a 23% increase

Market Capitalization(2): R$30.2 billion

OperationalEfficiency

Personnel and Administrative expenses:

- 7.8% reduction compared to 4Q06

- 4.2% up in 12 months

- 1.8% up in 12 months for companies under Unibanco’s direct management

Highlights

(1) Average Daily Trading Volume

(2) As of May 9th, 2007

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1Q071Q06

1Q06 = 100

Performance – 1Q07 versus 1Q06

100

LoanPortfolio

118

100

AdministrativeExpenses

104100

OperatingIncome

112

100

Net Income

112

100

Provision for Loan Losses

82100

Core Deposits

133

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1Q074Q06

Performance – 1Q07 versus 4Q06

100

LoanPortfolio

104

100

AdministrativeExpenses

92100

OperatingIncome

102 100 101

100

Provision for Loan Losses

98100

Core Deposits

105

Net Income

1Q06 = 100

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Income Statement Summary

R$ Millions

1,884 1,957

869 886

(1,384) (1,501)

938 917

581 576

1,716

839

(1,328)

840

520

1Q06

Gross Profit from Financial Intermediation

4Q06

(524) (533) (642)

2,408 2,490 2,358

1Q07

Personnel and Administrative Expenses

Fees from Services Rendered

Provisions for Loan Losses

Net Profit from Financial Intermediation

Operating Income

Net Income

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Financial Indicators

Net Profit from Financial Intermediation

Total Assets Loan Portfolio

Earnings per Share (R$)

103,709

93,689

98,217

Mar-06 Dec-06

45,361

39,684

1,902

1,716

1Q06 2Q06 3Q06 4Q06

1,724

1Q07

101,999

Mar-07

41,929

0.21

0.19

0.20

R$ Millions

Mar-06 Jun-06 Dec-06 Mar-07

43,323

0.20

Sep-06 Sep-06Jun-06

115,191

1,9571,884

1Q06 2Q06 3Q06 4Q06 1Q07

0.21

47,001

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18.4%

Dec-06 Mar-07

3.6%

5.4%

Mar-06

Wholesale

Retail

R$ Millions

39,684

45,361

1.3%

25,940

23,281

19,42116,403

47,001

27,330

19,671

Loan Portfolio Growth

Brazilian Financial System

13.8%18.4%3.6%

20.7%21.0%3.3%

2006 Quarter 12 months

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1Q06 1Q07

9.3%10.9%

7.9%

Financial Margin After Provision Financial Margin

23.3%

21.8%

27.2%27.9%

Provision for Loan Losses / Financial Margin

-730 b.p.

1Q072Q06 3Q061Q06

21.4%

4Q06

16.5%

12.75%

Selic Rate

7.2%

Financial Margin

29.1%

4Q05

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6.2%6.4%8.0%116%115%

113%

92%

69%

Mar-06 Dec-06 Mar-07

Mar-06 Dec-06 Mar-07Mar-06 Dec-06 Mar-07

Asset Quality

D-H Portfolio / Loan Portfolio

Coverage E-H Portfolio

Coverage D-H Portfolio

92%

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3,963

6,757

5,452

16,172

29,631

89,583

45,803

43,780

45%

Demand Deposits

Savings Deposits

Core Deposits CDs

Core Deposits

Time Deposits + Debentures

Assets Under Management (B)

Total Deposits + Debentures + AUM (A+B)

Total Deposits + Debentures (A)

Core Deposits / Total Deposits

R$ Millions

5,248

3,604

28,725

39,924

35%

Mar-07 Dec-06 Mar-06

Deposits and Assets under Management

4,014

7,510

5,478

45,606

17,002

29,430

92,038

46,432

49%

3,959

12,811

81,460

41,536

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4.2%

4Q06 1Q07

-7.8%

-10.6%

1Q06

AdministrativePersonnel

R$ Millions

5581,328 -3.0

541535

843793

1,501

943

1,384

Personnel and Administrative Expenses

Total Expenses

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Fee Income

R$ Millions

Total

Banking fees and commissions

Credit Cards – own cards(1)

Assets under management

4Q061Q07 1Q06

Subtotal

Redecard

Other fees

460510

82

886

520

76

869

135121

6262

824807

97

839

102

88

751

9790 92

(1) Hipercard + Unicard

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Revenues

R$ Millions

Efficiency Ratio Expenses

47.5%

53.7%

1Q05 1Q061Q04 1Q07

1,921

1,143

2,212

1,187

2,797

1,328

Efficiency Ratio

59.5%

2,940

1,501

4Q06

51.1%

1,384

48.8%

2,835

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903

551

111

(67)

31

79

Net premiums written

Premiums earned

Industrial result

Personnel and administrative expenses

Operating income

Net Income

R$ Millions

849

474

79

(58)

30

92

1Q07 4Q06 1Q06

Insurance and Pension Plans

1,142

625

106

(63)

35

69

85Financial & equity result 8253

Income Statement Summary

8,298

44.6%

Technical Reserves

Loss Ratio

7,304

55.6%

8,730

47.3%

94.4%Combined Ratio 93.7%94.4%

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Stocks

Unibanco was the first Brazilian

bank to be listed on the New

York Stock Exchange (NYSE)

In 2007, Unibanco celebrates its

10th anniversary of listing in the

american market

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On April 27th, 2007, Moody’s Investors Service upgraded Unibanco’s Financial

Strength rating to B- (B minus) from C-, representing a 3-notch upgrade The new rating is the highest assigned in the country, and places Unibanco among

the top Brazilian banks in Financial Strength. Only 2 other financial institutions

obtained the same rating

Unibanco's Rating is upgraded

Ratings

Fitch Ratings upgraded, on May 14th, 2007, Unibanco's rating to BBB-, which

represents an investment grade. The rating refers to the long-term foreign currency IDR (Issuer Defaut Rating) and is

the highest among Brazilian Financial Institutions. This current level is also higher

than the rating assigned to Brazil, BB+.

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Shareholders’ Structure

Investor Relations

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Moreira Salles Group

Float Units + GDS

Others

Total

513,068

1,075,410

40,668

1,629,146

Unibanco Holdings

Float Units + GDS

Others

Total

1,629,146

1,075,410

98,515

2,803,071

18%

38%

2%

58%

58%

38%

4%

100%

PNUnibanco Holdings

PN Unibanco

+ UNITs76.7%

Shareholders’ Structure

% of Unibanco shares

% of Unibanco shares

Thousands of Shares

1 GDS=10 Units

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Ratings

Investor Relations

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Unibanco Ratings

Fitch Ratings

Unibanco

BB+

Foreign Currency

Brazil

Long Term

Short Term

BBB-

B

F3

BB+

Local Currency

Brazil

Long Term

Short Term

-

Unibanco BBB- F3

Standard and Poor’s

Unibanco

BB+

Foreign Currency

Brazil

Long Term

Short Term

BB+

B

B

BBB

Local Currency

Brazil

Long Term

Short Term

A-3

Unibanco BB+ B

Moody’s

Long TermDebt

Long Term Deposits

Short Term Deposits

Financial Strength

Unibanco Baa3(1) NP B-Ba3

Brazil Ba2 Ba3 NP -

Global Scale: Foreign Currency Global Scale: Local Currency

Long Term Deposits

Short Term Deposits

Unibanco P-1A1

Brazil A1 P-1

(1) The Baa3 rating was attributed to the MTN Programme (Medium Term Note Programme) of Unibanco and also to the notes indexed to the IGP-M (General Market Price Index) and payable in US dollars issued by Unibanco Grand Cayman Branch.

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Unibanco and Unibanco Holdings, S.A.

This presentation contains forward-looking statements regarding Unibanco, its subsidiaries and affiliates - anticipated synergies, growth plans, projected results and future strategies. Although these forward-looking statements reflect management’s good faith beliefs, they involve known and unknown risks and uncertainties that may cause the Company’s actual results or outcomes to be materially different from those anticipated and discussed herein. These risks and uncertainties include, but are not limited to our ability to realize the amount of the projected synergies and the timetable projected, as well as economic, competitive, governmental and technological factors affecting Unibanco’s operations, Junkets, products and prices, and other factors detailed in Unibanco’s filings with the Securities and Exchange Commission which readers are urged to read carefully in assessing the forward-looking statements contained herein. Unibanco undertakes in duty to update any of the projections contained herein.

Investor Relationsphone: 5511-3584-1980

fax: 5511-3584-1585email: [email protected]

site: www.ir.unibanco.com